Down by the Bay: AI and the future of San Francisco real estate
The Weekly Take from CBRE - A podcast by CBRE - Mondays
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San Francisco has been facing extraordinarily high office vacancy rates since the pandemic. But more recently, the rise of artificial intelligence (AI) has stimulated demand for space and an influx of capital. Real estate investor Glenn Gilmore and CBRE’s Mike Taquino discuss the city’s history of resilience, culture of innovation and greatest opportunities.Insights to Share: Venture capital firms, particularly those focused on AI, are increasingly establishing offices in San Francisco, which is driving demand for office space. San Francisco’s well-known headwinds have caused investors to shy away from what could be generational buying opportunities. AI is driving significant changes in San Francisco's real estate market, in terms of the types of offices needed and the locations most in demand. AI is also encouraging shorter lease terms, reflecting the fast-moving nature of tech companies. San Francisco’s tenants are showing a preference for high-end and creative office space, as well as a preference for sustainability and adaptive reuse.
